The International Investment Bank (IIB) took part in the first securitization of SME loans in Russia which was implemented by JSC SME Bank and PJSC Promsvyazbank, thus supporting the sustainable financing of small and medium-sized businesses.
LLC SPE PSB SME 2015, created for the securitization of Promsvyazbank’s SME loan portfolio and protected from bankruptcy under the Russian legislation, issued collateralized debt obligations (“A” class securities). SME Bank acted as the organizer of the issue and the anchor investor, while Baker & McKenzie carried out legal and tax support. The monthly coupon of “A” class obligations was set at 10.25% p.a. with rating from Moody’s at Baa3. IIB’s share in the issue represents around 7%.
The IIB and SME Bank started collaborating in 2013 after signing a cooperation agreement and a loan agreement, under which the IIB provided resources for SME financing. In August 2015, the multilateral development institution issued its first banking guarantee for RUB 313.7 million in favor of SME Bank to securing obligations of PJSC NDB-Bank (Nizhny Novgorod) as part of the bank receiving resources for SME support.